Global Gas Report 2024 Edition

The International Gas Union (IGU), Snam and knowledge partner Rystad Energy, are pleased to announce the Global Gas Report 2024 Edition.

Rising Energy Demand in All Regions and Underinvestment in Gas and Clean Energy Jeopardise Global Energy Supply, with 2030 Energy Targets Visibly Out of Reach.

Key Messages:

• Global gas markets stay in fragile equilibrium, with limited supply growth as demand rises steadily, up by 1.5% in 2023, with an expected acceleration to 2.1% by the end of 2024. Asia continues to be the key engine of this growth, while North America and the Middle East are in the lead on the exports.
• Should gas demand continue to grow as in the last 4 years, without additional production development, a 22% global supply shortfall is expected by 2030. If demand continues to strengthen, the shortfall will be more pronounced. This underscores the urgent need to scale up investments.
• Energy demand has continued to rise in developed and developing regions, while coal burning increased more than ever in 2023, remaining the biggest source of global energy emissions – which broke another record. If current energy demand and supply trends persist, 2030 targets outlined in policy driven decarbonisation scenarios will most likely be missed. In fact, despite efforts to enhance efficiency and ongoing industrial decline, Europe has experienced energy demand growth. In North America, energy demand has surpassed 2019 levels and continues to climb, fueled by the transport sector and AI data centers. Asia’s demand is also surging, particularly in the industrial sectors of India and China. Meanwhile, Africa’s energy demand is growing faster than in most regions, driven by urban development, though it still falls short of the levels required for full energy access, as equitable electricity access remains a significant challenge in Africa and parts of South America.
• To contain the growth of greenhouse gas emissions and to make global gas market equilibrium resilient it is critical to both enhance investment in natural gas supply and scale up biomethane, carbon capture and storage (CCS), and low-carbon hydrogen technologies. Natural gas today provides an immediate opportunity to cut emissions from coal by 50% and from oil by 30% through cost-effective switching. Biomethane is a direct substitution for natural gas. Today, its scale is significantly below potential at roughly 1% of the natural gas market, and it is primarily produced in North America and Europe. However, new centres of production are emerging in hubs like China and India. CO₂ capture capacity, a crucial technology for a successful energy transition, is also gaining momentum, but its scale is still far below what is needed, same as for biomethane and low-carbon hydrogen. These technologies will play a critical role in decarbonising energy supply (especially in hard-to-abate sectors) and ensuring its resilience. Scaling them is essential, calling for urgent investment and enabling policies to start building the growing volumes of project proposals.

 

Published on August 27, 2024 Download PDF (13 MB)